Wyoming needs new ‘startup ecosystem’

By Joy Ufford
Posted 7/7/17

Removing barriers across Wyoming for entrepreneurs and business owners – while attracting and holding younger generations – means creating a new “startup ecosystem” of support for economic diversity.

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Wyoming needs new ‘startup ecosystem’

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PINEDALE – Removing barriers across Wyoming for entrepreneurs and business owners – while attracting and holding younger generations – means creating a new “startup ecosystem” of support for economic diversity.

Gov. Matt Mead’s initiative, the ENDOW Executive Council of statewide appointees, met in Pinedale on June 29-30 to explore and brainstorm. “ENDOW” stands for “Economically Needed Diversity Options for Wyoming.”

Some appointed to the governor’s task force are heads of state departments; others are legislators and businesspeople. All are on a shared mission to bring more economic diversity to Wyoming. Although no one from Sublette County sits on the executive council, Wyoming House Rep. Albert Sommers of Pinedale is very involved, particularly with finding ways to inspire innovation to benefit the county and the state.

Sommers and Pinedale mayor Bob Jones addressed the council on Friday, June 29, stating accessible broadband Internet is needed to tie residents, entrepreneurs and businesspeople together and make it simple for young people to successfully live and work in 21st-century rural Wyoming.

“Wyoming lacks the resources and supports for new business growth,” commented councilmember Jesus Rios. “How do we bring all the resources to the forefront across the state? Make connections with businesses? ENDOW can ensure all of these great resources are being communicated.”

He said Mayor Jones’ comments about the need for broadband Internet is an example of what kind of “development” is needed to make Wyoming more business-friendly.

“As we heard, there’s a fiber line going through town,” Rios said. “The real challenge is distribution fibers – getting that fiber into homes and businesses.”

ENDOW council members noted from their Jackson Hole business tour the day before that it would be wise to take advantage of that entrepreneurial knowledge by helping them expand to Sublette County rather than Teton Valley, Idaho.

“How can we strengthen each other to share opportunities,” commented chair Bill Schilling, director of the Wyoming Business Alliance. “Innovation needs to be front and center continually. … We have to be the champions, as well.”

Councilmember Bob Viola said, “Thoughtful state support was absolutely critical to our success. Well-crafted state programs can really enhance business development.”

The group acknowledged the beauty of Teton County and nearby national parks draw young people who love the outdoors, decide to stay and develop new ideas, making Jackson Hole high on “quality of life” – but low with its affordable housing barrier.

After hearing more comments, Schilling asked the council “to focus on some of the ‘barrier’ discussions.”

Shawn Reese, CEO of the Wyoming Business Council (WBC), said many “barriers” to economic diversity are “interrelated.”

Economic development “building blocks” of new business recruitment, existing building development, entrepreneur development, quality of life, workforce development, infrastructure development and leadership and public policy are tools used by the state to consider how to create and keep workers and businesses in Wyoming, according to Reese.

“We started identifying … a lot of resources and gaps,” Schilling said. “To recap, the barriers we discussed in the May meeting.”

They include jobs for spouses, diversity opportunities, the “permanent barrier” of quality and available housing and the lack of community assets.

“Community assets such as the main street, access to health care, curb appeal, lack of entertainment,” Reese said. “How do we balance our heritage with the sometimes urban-style amenities that could bring more people in.”

Some outside the state have negative “attitudes and beliefs” perceptions of Wyoming, he added, about its politics, “climate notions” and being “anti-growth” and “unwelcoming” with little support for new families as well as the “isolation of being single in a rural community.”

Reese cited WBC “assets” that he says can draw people to Wyoming as well as WBC’s current funding barrier.

WBC’s Business Ready Community program is very effective but “limited by existing funds” of just over $3 million for community enhancements. That will likely go to higher priority projects that create jobs, according to Reese. He also pointed out the Main Street Wyoming program has 18 certified communities but its funding was also cut.

Other WBC initiatives include “trying to understand our air service needs” with a statewide task force, broadband Internet and housing, he said. “How do we bring new voices and solutions?”

John Cox, DWS director, said one barrier he finds is that Wyoming’s workforce “needs people skilled at being human beings” and ready for the workplace.

Workers should enter the workforce with “soft skills” and be “career-ready” at the high school level, “which is just as important as the college level perhaps.”

He put it plainly: “Life skills are absent in the younger work force.”

Councilmember Steve Farkas, UW Business College assistant dean, turned to physical infrastructure barriers in transportation and air service, including railroads.

“We focused on 22 infrastructure barriers and a lot are being addressed through Wyoming Business Council, WYDOT and the air service task force,” he said.

Another problem is Wyoming’s higher energy costs compared to other mountain states – “part of the barrier of the cost of doing business in Wyoming.”

The state lacks accountants, lawyers and marketers – “business service providers” – to encourage business startups, “especially dealing with intellectual property. I believe there’s one IP attorney in all of Jackson.”

Wyoming ranks last for business access to capital, second to last for average health-care insurance premiums. UW ranks 48th in technology and innovation and is unranked in a list of 250 for technology transfer – “UW should be extremely committed; it should be the seed.”

What Wyoming needs to create is a proactive “startup ecosystem” that identifies and sustains alliances, Farkas said.

Jerimiah Rieman of ENDOW is Mead’s natural resource policy director for economic diversification strategy and initiatives.

Wyoming has numerous state employees who live outside the state, he noted – “Look at those bedroom communities to see what attracts them.”

“Business and industry are not taking leadership roles with the workforce,” he said, explaining more business and education collaboration is needed “to streamline career pathways.”

As for Wyoming’s wage gap – “Wyoming ranks dead last for a number of years.”

“If the Legislature has a collaborative relationship with the state agencies, there needs to be a common understanding of what’s out there.”

Also, “Wyoming essentially ranks lack in private investment capital flow.”

“Restrictive regulations” such as the “antiquated” state liquor commission’s distribution and licensing are “an enormous barrier” for cafes and restaurants that add “quality of life.”

Wyomingites need to understand how others see the state and decide how they want to be perceived, Rieman added. “Balance that against our heritage and culture … but by looking toward the future rather than the past.”

Councilmember Mark Christensen pointed out, “Some of the things I see up here showing up as challenges are also reasons people come to Wyoming, too.”

“Quality of life is not just for the breadwinner,” councilmember Wally Wolski said. “It’s also for the family. … We’re really talking about what keeps a family in a community.”

Schilling continued to list other identified barriers – education for the entire family, especially early child-care education, and lack of community pride.

ENDOW’s monthly meeting are live-streamed and recorded. The public is invited to participate. Go to http://www.endowyo.biz/.